Publications
Publications
- 2009
- HBS Working Paper Series
Running Out of Numbers: Scarcity of IP Addresses and What to Do About It
By: Benjamin Edelman
Abstract
The Internet's current numbering system is nearing exhaustion: Existing protocols allow only a finite set of computer numbers ("IP addresses"), and central authorities will soon deplete their supply. I evaluate a series of possible responses to this shortage: Sharing addresses impedes new Internet applications and does not seem to be scalable. A new numbering system ("IPv6") offers greater capacity, but network incentives impede transition. Paid transfers of IP addresses would better allocate resources to those who need them most, but unrestricted transfers might threaten the Internet's routing system. I suggest policies to facilitate an IP address "market" while avoiding major negative externalities—mitigating the worst effects of v4 scarcity, while obtaining price discovery and allocative efficiency benefits of market transactions.
Keywords
Policy; Resource Allocation; Market Transactions; Internet; Technology Networks; Technology Industry; Telecommunications Industry
Citation
Edelman, Benjamin. "Running Out of Numbers: Scarcity of IP Addresses and What to Do About It." Harvard Business School Working Paper, No. 09-091, February 2009. (Revised March 2009.)